The Central Bank of Nigeria (CBN) has confirmed that customers withdrawing less than ₦20,000 from another bank’s ATM will continue to pay a fee of ₦100 per transaction. This is part of the newly revised ATM transaction charges set to take effect from March 1, 2025, as stated in a circular issued on February 10, 2025.
Under the new policy, withdrawals from ATMs belonging to a customer’s bank will remain free. However, for on-site ATMs (machines located within bank branches), a fee of ₦100 per ₦20,000 withdrawal will apply for customers using another bank’s ATM. For off-site ATMs (machines located in malls, fuel stations, and other public areas), an additional surcharge of up to ₦500 per transaction may be applied.
For international ATM withdrawals, customers will be charged based on the actual fee set by the international acquirer. The CBN explained that the charge on smaller withdrawals is meant to discourage customers from breaking transactions into smaller amounts to avoid fees.
Another major change is the removal of the three free monthly withdrawals previously allowed for customers using another bank’s ATM. Starting March 1, 2025, all withdrawals from other banks’ ATMs will attract a charge, potentially increasing costs for frequent ATM users.
The CBN emphasized that banks must not exceed the prescribed fees but may choose to reduce charges based on their business strategy. Banks that force customers to withdraw in smaller amounts despite having sufficient funds will face sanctions.
To reduce ATM withdrawal fees, the CBN advises customers to prioritize using their bank’s ATMs and explore digital payment options such as mobile banking, POS transactions, and electronic transfers.